Justia Utilities Law Opinion Summaries

In consolidated cases, the Commonwealth Court reversed determinations of the Pennsylvania Public Utility Commission (“PUC”), holding that Section 1301.1(a) required public utilities to revise their DSIC calculations to include income tax deductions and credits to reduce rates charged to consumers. Several public utilities sought to add or adjust DSICs to recover expenses related to repairing, improving, or replacing their distribution system infrastructure, and the Office of Consumer Advocate (“OCA”), through Acting Consumer Advocate Tanya McCloskey, raised challenges to these DSIC computations seeking to add calculations to account for income tax deductions and credits and thereby reduce the rates charged to consumers. The parties disputed whether and, if so, how the addition of Section 1301.1(a) into Subchapter A of Chapter 13 of the Code, requiring inclusion of “income tax deductions and credits” in rate calculations, should apply to the DSIC rate adjustment mechanism of Subchapter B of Chapter 13, 66 Pa.C.S. sections 1350- 1360. Broadly, the PUC and the public utilities argued: (1) ambiguity existed as to whether the General Assembly intended Section 1301.1 to apply to the DSIC mechanism; and, assuming for argument that it did apply; (2) that the Commonwealth Court’s application of Section 1301.1(a) improperly created conflicts with the statutory provisions governing the DSIC calculation; and/or (3) that certain existing DSIC statutory provisions could be read to satisfy the requirements of Section 1301.1(a). Though the Pennsylvania Supreme Court differed in its reasoning, it affirmed the outcome of the Commonwealth Court's judgment. View "McCloskey v. PUC" on Justia Law

Proposition 218, the Right to Vote on Taxes Act, generally required local governments obtain voter approval prior to imposing taxes. Plaintiffs Jess Willard Mahon, Jr. and Allan Randall brought this certified class action against the City of San Diego (City) claiming that the City violated Proposition 218 by imposing an illegal tax to fund the City’s undergrounding program. Specifically, plaintiffs contended the City violated Proposition 218 through the adoption of an ordinance that amended a franchise agreement between the City and the San Diego Gas & Electric Company (SDG&E). The ordinance, together with a related memorandum of understanding, further specifies that part of the money to fund the undergrounding budget will be collected by SDG&E through a 3.53 percent surcharge on ratepayers in the City that will be remitted to the City for use on undergrounding (Undergrounding Surcharge). Plaintiffs claim that the surcharge is a tax. Plaintiffs further claim that the surcharge violates Proposition 218 because it was never approved by the electorate. Plaintiffs note that the City has imposed more than 200 million dollars in charges pursuant to the Undergrounding Surcharge during the class period. Through this action, plaintiffs seek a refund of those amounts, among other forms of relief. The City moved for summary judgment, which the trial court granted on two grounds: (1) the Undergrounding Surcharge constituted compensation for franchise rights and thus was not a tax; alternatively, (2) the Undergrounding Surcharge was a valid regulatory fee and not a tax. After review, the Court of Appeal concluded the trial court properly granted the City’s motion for summary on the ground that the Undergrounding Surcharge was compensation validly given in exchange for franchise rights and thus, was not a tax subject to voter approval. View "Mahon v. City of San Diego" on Justia Law

In September 2012, Steven Mader was working on a project involving repairs to a chimney, fireplace, and front stoop of a home in the North Hills of Pittsburgh, Pennsylvania. After Mader completed the project and his crew was cleaning the premises, his customer asked if he would check the gutters of the home to see if any mortar from the chimney repair had washed into the gutters during a recent rainstorm. Mader, after checking the gutters, was returning to his truck with the ladder. Mader had not noticed that there was an electrical power line only 11 feet from the customer’s home. The top of the ladder made contact with the power line and 13,000 volts of electricity ran down the ladder and through Mader’s body. Mader survived, but had sustained significant injuries to his feet and arms. Mader was eventually able to return to work, but closed his business for good following his final surgery. In April 2013, Mader sued Appellee Duquesne Light Company, the owner of the power line the ladder came into contact with, in the Allegheny County Court of Common Pleas. Mader alleged that Duquesne Light’s negligence in maintaining the electric lines too close to the ground caused his injuries and that Duquesne Light acted with reckless indifference to his safety; he also sought punitive damages. At the conclusion of a trial by jury, Duquesne Light was found to be 60% negligent and Mader was found to be 40% negligent for his injuries. Mader filed a motion for post-trial relief requesting a new trial on the issue of damages. Duquesne Light acknowledged that Mader was entitled to a new trial on damages for pain and suffering until the date his wounds healed, and disfigurement. It denied, however, that Mader was entitled to a new trial on future noneconomic damages or either past or future lost earnings. Nevertheless, the trial court granted Mader’s request for a new trial on all damages. The Pennsylvania Supreme Court agreed with the superior court that the trial court abused its discretion in ordering a new trial on all damages. View "Mader v. Duquesne Light" on Justia Law

At issue in this case was a Public Service Commission order setting rates an electric utility had to pay to solar and other qualifying renewable energy producers for electricity the utility will then sell to its customers. The South Carolina Supreme Court dismissed the appeal because two of the appellants lacked standing to appeal, and the appeal was moot as to the remaining appellant. View "SC Coastal Conservation League v. Dominion Energy" on Justia Law

The Riverside County Transportation Commission (Commission) sought to extend its Metrolink commuter rail line from Riverside to Perris, using the route of a preexisting rail line that it had acquired. At five points, however, the new rail line would cross gas pipelines owned by the Southern California Gas Company. The Gas Company had installed these pipelines under city streets decades earlier, pursuant to franchises granted by the relevant cities and, in some instances, pursuant to licenses granted by the then-owner of the preexisting rail line. The new rail line could not be built as long as the pipelines remained in place. The Commission terminated the licenses and demanded that the Gas Company relocate its pipelines at its own expense. The parties agreed that the Gas Company would relocate its pipelines, to other points also owned by the Commission, and the Commission would pay the estimated expenses, but only provisionally; the Commission could still sue for reimbursement, and the Gas Company could then sue for any additional expenses. The trial court ruled that the Gas Company had to bear all of the costs of relocation; however, it also ruled that the Gas Company had never trespassed on the Commission’s land. Both sides appealed. After review, the Court of Appeal held the Gas Company did have to bear all of the costs of relocation. However, the Court also held that, at those points where the Gas Company held licenses for its pipelines, once the Commission terminated the licenses, the Gas Company could be held liable for trespass. View "Riverside County Transportation Comm. v. Southern Cal. Gas Co." on Justia Law

The Wisconsin Public Service Commission issued a permit authorizing the construction of a $500 million electricity transmission line in southwestern Wisconsin. Two environmental groups sued under 42 U.S.C. 1983, seeking to invalidate the permit. The permit holders moved to intervene. The district court denied the motion. The permit holders appealed and moved for expedited review because the case continues without them in the district court.The Seventh Circuit granted the motion, reversing the district court. The permit holders are entitled to intervene under Rule 24(a)(2) of the Federal Rules of Civil Procedure; “this is a paradigmatic case for intervention as of right.” The three basic criteria for intervention are satisfied: the intervention motion was timely; the transmission companies hold a valuable property interest in the permit that is under attack; and their interest will be extinguished if the plaintiffs prevail. The only disputed question was whether the existing defendants adequately represent their interests. The Commission regulates the transmission companies, it does not advocate for them or represent their interests. The transmission companies cannot be forced to rely entirely on their regulators to protect their investment in this enormous project, which they stand to lose if the plaintiffs are successful. View "Driftless Area Land Conservancy v. Huebsch" on Justia Law

King County, Washington enacted a first-of-its-kind ordinance that required electric, gas, water and sewer utilities to pay for the right to use the county's rights-of-way (franchise). The associated planned charge was called "franchise compensation," and was based on an estimate of a franchise's value. If the county and utility couldn't agree on an amount, the county barred the utility from using its rights-of-way. The issue presented for the Washington Supreme Court's review centered on the County's authority to collect franchise compensation. Secondarily, the issue was whether water-sewer districts or private utilities could use the rights-of-way without a franchise from the County. The superior court ruled King County lacked authority to collect franchise compensation. The Supreme Court reversed, holding that generally, King County could collect franchise compensation. Water-sewer districts and private utilities had no general right to use King County's rights-of-way without a franchise. View "King County v. King County Water Dists." on Justia Law

The City of Wetumpka sued Alabama Power Company because Alabama Power refused to relocate overhead electrical facilities located within the City's downtown area at the power company's expense. The circuit court dismissed the case, finding that it was within the exclusive jurisdiction of the Alabama Public Service Commission. To this, the Alabama Supreme Court agreed: the City challenged service regulations of the PSC, and the PSC had exclusive jurisdiction to adjudicate such challenges. View "City of Wetumpka v. Alabama Power Company" on Justia Law

This appeal arose from the final order of the New Mexico Public Regulation Commission (Commission) granting part, but not all, of the increase in retail electric rates sought by the Public Service Company of New Mexico (PNM). The Commission’s final order was appealed by PNM and cross-appealed by the Albuquerque Bernalillo County Water Utility Authority (ABCWUA), New Energy Economy (NEE), and the New Mexico Industrial Energy Consumers (NMIEC). On appeal, PNM, NEE, ABCWUA, and NMIEC all raised numerous issues with the Commission’s final order. In this opinion the New Mexico Supreme Court addressed challenges made to the Commission’s decisions regarding Palo Verde Nuclear Generating Station, the installation of balanced draft technology at San Juan Generating Station, the new coal supply agreement at Four Corners Power Plant, the inclusion of Rate 11B in rate banding, PNM’s prepaid pension asset, and the adoption of Method A. The Supreme Court rejected each of the arguments on appeal except one: the Court concluded that, by denying PNM any future recovery for its nuclear decommissioning costs related to the Palo Verde capacity at issue in this case, the Commission denied PNM due process of law. Therefore, the Court declared all other aspects of the Commission’s final order to be lawful and reasonable, yet annulled and vacated the final order in its entirety pursuant to NMSA 1978, Section 62-11-5 (1982). The matter was remanded to the Commission for further proceedings as required and the entry of an order consistent with the Court’s opinion. View "Public Serv. Co. of N.M. v. N.M. Pub. Regulation Comm'n" on Justia Law

Plaintiffs Startley General Contractors, Inc. ("Startley"), and Mandy Powrzanas, appealed the denial of their renewed motion to have Jefferson Circuit Court Judge Robert Vance, Jr. recuse himself from the underlying action the plaintiffs filed against the Water Works Board of the City of Birmingham ("BWWB"), Board members, Jones Utility and Contracting Co., Inc., and Richard Jones (collectively, “defendants.”). Plaintiffs alleged the defendants conspired to violate Alabama's competitive-bid law in ways that resulted in financial harm to the plaintiffs. Plaintiffs contended that Judge Vance had received monetary contributions to his 2018 campaign for Chief Justice of the Alabama Supreme Court from law firms and attorneys representing the defendants. The Alabama Supreme Court concluded the renewed motion to recuse did not fall under the auspices of section 12–24–3, Ala. Code 1975, because it was not based on campaign contributions in "the immediately preceding election." Moreover, “even if [section] 12–24–3 did apply, the plaintiffs failed to establish a rebuttable presumption for recusal because, in order to meet the required threshold, the plaintiffs: (1) included contributions from law firms and individuals who were not ‘parties,’ as that term is defined in 12–24–3(c), to the case; (2) aggregated campaign contributions from multiple parties in contravention to 12–24–3(b) addressing campaign contributions made by ‘a party to the judge or justice’; and (3) incorrectly assumed that ‘total campaign contributions raised during the election cycle’ refers to one-month totals for campaign contributions rather than the ordinary meaning of an ‘election cycle,’ which concerns a longer period.” The Court concluded plaintiffs did not establish that a single, actual "party" to this case gave a "substantial campaign contribution" that would give rise to the conclusion that "[a] reasonable person would perceive that [Judge Vance's] ability to carry out his ... judicial responsibilities with impartiality is impaired." View "Startley General Contractors, Inc. v. Water Works Board of the City of Birmingham et al." on Justia Law